The Pound Sterling to Hong Kong Dollar (GBP/HKD) exchange rate weakened by 0.5% on Tuesday as UK construction PMI data disappointed economists and raised concerns that the UK economy is facing a slowdown.
Hong Kong Protestors have been battling police in the city’s streets as Hong Kong’s leader Leung Chun-Ying told protestors that their fight for democracy is in vain, as demonstrations failed to expand and student leaders declared a hunger strike.
The weekend and Monday saw the worst violence in several weeks as riot police fought protestors with tear gas, batons and water hoses.
The violence began as an injunction was issued for police to clear out a protest camp. The protestors want the people of Hong Kong to have the right to choose their own leaders in 2017 elections.
Beijing has said that it will allow universal suffrage, but said that it will vet candidates for the post of Hong Kong’s chief executive.
Row between UK and China Escalates
The fight for democracy in Hong Kong has led to a row between the UK and China. The UK once ruled Hong Kong and China sees its criticism as interfering.
In 1984 the UK and China agreed to a ‘one country, two system’ deal which opened up the way for the transfer of Hong Kong’s sovereignty from a British colony to Chinese rule in 1997.
In an escalation, the Chinese refused UK MPs from visiting Hong Kong.
Construction Data Weakens Pound Sterling
The Pound softened against the Hong Kong Dollar and other peers such as the US Dollar after a report published by Markit showed that the UK construction sector expanded at its slowest pace in 13 months in November.
The data comes a day before Chancellor George Osborne delivers his autumn statement.
The Pound to Hong Kong Dollar Exchange Rate is trading in the Region of 12.131
The Pound to Hong Kong Dollar Exchange Rate hit a session high of 12.207
The Pound to Hong Kong Dollar Exchange Rate hit a session low of 12.126
